Tyler Burmeister

Tyler Burmeister asked about the next expected milestones for the U.S. Strategic Rad-Hard (SRH) development program, following the $13 million tranche and the expansion with GlobalFoundries. He also inquired about the anticipated revenue trajectory throughout the year, specifically if sequential growth is expected linearly or with lumpiness.

Answer

President and CEO Brian Faith stated that while he couldn't provide specific programmatic details, the contract contemplates two devices (a test chip and a final chip). With the test chip taped out, the next phase involves developing the second chip, aligning with obligations and increased funding. He indicated that Q1 is expected to be the low point for the year, with subsequent quarters showing sequential growth, though some lumpiness might occur due to the timing of large IP contract deliveries.

Tyler Burmeister sought information on the next expected milestones for QuickLogic's U.S. Strategic Rad Hard (SRH) development program, following the $13 million tranche and GlobalFoundries expansion. He also asked whether revenue throughout 2026 would be lumpy, potentially seeing a sequential decline in Q2, or if a more linear growth trajectory was anticipated.

Answer

President and CEO Brian Faith stated that while he could not disclose specific programmatic details, the contract encompasses two devices (a test chip and a final chip), and the company is now developing the second chip. Regarding revenue, Faith indicated that Q1 is expected to be the low point for the year, with subsequent quarters showing an increase, though some lumpiness might occur due to the timing of contract recognition and delivery.

Tyler Burmeister asked about the expected growth contributions from Inseego's mobile and FWA businesses in 2026, specifically whether fixed wireless access would be a relatively larger contributor to growth. He also inquired about the timeline for meaningful contributions or announcements from MSO and other distribution channel opportunities.

Answer

CFO Steven Gatoff and CEO Juho Sarvikas stated that both mobile and FWA are expected to grow in 2026, with mobile having significant room for growth and FWA having a larger long-term Total Addressable Market (TAM). CEO Juho Sarvikas highlighted MSOs as a significant opportunity for FWA, expecting discussions to progress throughout the year. He also noted that VARs and MSPs, including major resellers like CDW, Insight, and SHI, are expected to be slower but significant long-term growth drivers.

Tyler Burmeister asked about the relative growth contributions of Inseego's mobile and FWA businesses for the 2026 guide, specifically if FWA is expected to be a larger growth driver given mobile's softer 2025. He also inquired about the timeline for meaningful contributions or announcements from MSO and other distribution channel opportunities.

Answer

Steven Gatoff (CFO) clarified that both mobile and FWA are expected to grow in 2026. Juho Sarvikas (CEO) added that while both have significant growth potential, the long-term mix is expected to favor FWA due to its larger Total Addressable Market (TAM) and portfolio expansion. Regarding MSOs and distribution channels, Juho Sarvikas anticipates strong discussions with MSOs throughout the year, viewing them as similar to carriers for FWA use cases. He noted that VARs and MSPs, including major resellers like CDW, Insight, and SHI, will be slower but significant long-term growth drivers, with programs and stocking already underway.

Asked for clarification on the new Tier one OEM customer, an update on the Quanta partnership timeline, progress with defense contractors, and the potential for further inventory reduction.

Answer

The new OEM is not Quanta but another large ODM for industrial thermal vision, with shipments ramping. The bulk of the Quanta ramp is expected in 2026. First production orders from defense contractors are expected in the second half of the year. The company aims to reduce inventory by another $2 million and is shifting to a finished goods model with Quanta for the new LX1 to improve inventory management.

Tyler Burmeister of Craig-Hallum Capital Group LLC inquired about the identity of the new Tier-1 OEM partner, the status and ramp timeline for the Quanta partnership, progress on defense OEM contracts, and the potential for further inventory reduction.

Answer

CEO Paul Travers clarified the initial Tier-1 OEM waveguide shipments are with a partner separate from Quanta, targeting industrial thermal vision, with a ramp expected through 2025 and into 2026. He noted the main Quanta ramp is now anticipated in 2026, while initial defense production orders are expected in the second half of 2025. Regarding inventory, both Travers and CFO Grant Russell explained the goal is to reduce it further, aided by the new LX1 supply chain model which involves purchasing finished goods from Quanta.

Tyler Burmeister, on behalf of Christian Schwab, asked about the revenue levels the post-restructuring operating expense model can support. He also sought clarification on the Q1 tax benefit and future tax rate expectations, and finally, asked for an update on capital allocation priorities, including M&A and share buybacks.

Answer

CFO Jeffrey Jones detailed the OpEx model, stating that at a $100 million quarterly revenue level, OpEx should be around $47 million, rising to about $49 million at a $130 million revenue level. He explained the Q1 tax benefit was due to a tax loss and advised using a high effective tax rate of around 90% for modeling the second half of the year at near-breakeven profitability. Regarding capital allocation, Jones confirmed that M&A review is ongoing but that the share buyback is paused for Q2 after meeting the 2025 goal of offsetting equity dilution in Q1.

Tyler Burmeister, on behalf of Christian Schwab, asked about the specific end markets most impacted by tariff uncertainty, the likelihood of shipping the full backlog within the quarter, and for a rank-ordering of future growth drivers like AI versus silicon carbide.

Answer

CEO Gayn Erickson explained that tariff impacts are more customer-specific than market-specific and detailed mitigation strategies like drop-shipping. He confirmed some backlog extends beyond the current quarter and noted the tariff uncertainty was the primary reason for withdrawing near-term guidance. For future growth, Erickson highlighted a strong outlook for a silicon carbide recovery, continued expansion in GaN and silicon photonics, and major growth opportunities in both wafer-level and packaged part burn-in for AI processors.

Tyler Burmeister, on behalf of Christian Schwab, asked for color on which end markets are most affected by tariff uncertainty, the likelihood of shipping the full backlog within the quarter, and for a rank-ordering of future growth drivers between AI and a recovering silicon carbide market.

Answer

CEO Gayn Erickson explained that tariff uncertainty is more about customer geography and timing rather than specific markets, leading to the temporary withdrawal of near-term guidance due to potential shipment delays around the fiscal year-end, not a change in underlying demand. He detailed supply chain mitigation strategies like drop-shipping. For future growth, Erickson highlighted a strong outlook for fiscal 2026, expecting a recovery in silicon carbide, new production ramps in GaN and silicon photonics, and significant growth from both wafer-level and packaged part burn-in for AI processors, with flash memory being a longer-term opportunity.

Tyler Burmeister of Craig-Hallum Capital Group inquired about the second-half fiscal year growth outlook, the progress of new Smart Grid opportunities, and the financial implications of the Edge AI development agreement with Qualcomm.

Answer

CEO Saleel Awsare acknowledged a Q2 slowdown from a major automotive customer in Turkey but anticipates sequential improvements throughout the rest of the fiscal year. He confirmed ongoing deployments with their large European smart grid partner and highlighted new proofs-of-concept in North America (Massachusetts) and expansion into Latin America. Regarding the Qualcomm deal, Awsare stated that while specific dollar amounts are not disclosed, Lantronix is providing services to enhance Qualcomm's AI hub.